OTP Romania reports EUR 7.6mn loss on high provisioning costs in Q3.

By bne IntelliNews November 22, 2010
OTP Bank Romania said its loss remained flat on the quarter to EUR 7.6mn in Q3, mainly due to high provisioning costs that reached EUR 15.9mn, Ziarul Financiar daily reported. The bank's operating profit, however, rose to EUR 24mn in Q3 from EUR 17mn a year earlier, but the provisioning costs remained high, at roughly constant level from the previous quarter. The bank's loan portfolio inched up 1% q/q to EUR 1.13bn at the end of September, out of which EUR 818mn were retail loans and EUR 320mn - corporate loans. OTP explained that the assets' quality has deteriorated in the corporate segment in Q2 and in mortgage segment in Q3. The share of loans with payments overdue more than 90 days increased to 9.6% at the end of September, from 8.4% at the end of June and 2.3% at the end of September 2009. The daily quoted OTP Bank Romania's head Laszlo Diosi as saying in a recent interview that while the bank would definitely end this year with a loss, he expects profits in 2011 as new loans have a much better quality and are managed separately from the old loans. OTP Bank Romania is the local unit of Hungary's biggest financial group OTP.

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